Whalesbook
The Indian rupee is experiencing its longest undervaluation in seven years, with the Real Effective Exchange Rate (REER) dropping to 97.47 in October, according to RBI data. This sustained undervaluation, driven by low domestic inflation and a weaker spot currency, is favorable for India's export competitiveness. Economists expect this trend to potentially reverse as inflation rises later in the year. The rupee has also seen depreciation against the dollar, touching record lows recently.